Lyriq EV tax credit reinstated following sourcing changes by GM

Cadillac has reinstated the full $7,500 consumer tax credit for its Lyriq electric vehicle (EV) after a brief period of ineligibility. The pause in eligibility was due to updated clean vehicle credit guidelines issued by the U.S. Treasury in early January, which temporarily affected the Lyriq. To resolve this issue, General Motors (GM) expedited changes in the sourcing of two minor components, allowing Ultium Cells to produce qualifying cells for the Lyriq.

During the period when the tax credit was unavailable, Cadillac offered a $7,500 discount on the purchase of the Lyriq. This discount will remain applicable for vehicles manufactured before the sourcing changes were implemented. John Roth, global vice president of Cadillac, highlighted the significance of the Lyriq in Cadillac’s transition to electric vehicles, noting its strong performance in the compact luxury EV SUV segment, where it achieved a 33% market share last year. The reinstatement of the $7,500 tax credit is intended to maintain sales momentum and demonstrate Cadillac’s commitment to EV development.

In addition, Cadillac plans to release a software update for the 2023 Lyriq in March, designed to enhance the vehicle’s user experience. This update will improve features such as Super Cruise and Adaptive Cruise Control, streamline the use of the universal remote and glove box controls, and accelerate the response time for commands through the myCadillac mobile app. Lyriq owners will be notified to schedule appointments with their dealers for the software updates.